Under the memorandum of understanding (MOU), the firms will work together on market development, stakeholder engagement, and bunkering logistics, with an initial focus on the US Gulf Coast and Northwest Europe.

The plans could see CF supply low-carbon ammonia from its carbon capture-retrofitted Donaldsonville plant in Louisiana, with Trafigura offering commodity logistics support.

TFG, a joint venture between Trafigura and shipping companies Frontline and Golden Ocean Group, could also provide support through its marine fuel supply network for last-mile delivery, coordinating bunkering demand, and fuel transportation.

It comes after CF and Trafigura worked on the first shipment of low-carbon ammonia from Donaldsonville to Belgium last year.

Bert Frost, Executive Vice President of CF Industries, said the agreement will aim to “establish the supply chain necessary” for transitioning marine shipping to low-carbon ammonia as a fuel.

Patricio Norris, Global Head of Ammonia and LPG at Trafigura, added that the agreement “brings together the critical components” needed for this.

Ammonia is considered a future clean fuel for shipping, with the first ammonia-powered vessel pilots and bunkering trials proving technical viability.

However, like most clean fuels, it faces tough barriers to overcome cost concerns and securing commitment from ship operators to invest in ammonia-fuelled vessels.